Non-telcos have more to worry about AGR bill, may owe upto Rs 2.27 trillion

In its submission to the Supreme Court, seeking a review of its verdict on the payment of dues linked to adjusted gross revenue (AGR), Bharti Airtel has estimated that non-telecom companies including public sector units (PSUs) have to fork out as much as Rs 2.27 trillion as a result of last month’s court order that upheld the government definition of AGR.

Based on the calculations given in the petition, the AGR-related payout by non-telecom companies would far exceed the demand made on telcos including those who have either shut down or sold off. According to estimates, telcos will need to pay Rs 1.47-trillion dues towards AGR and spectrum usage charges (SUC).  

The non-telecom companies, which have come under the AGR net, were also signatories of the unified access service licence (UASL) agreement as well as others like the national and international long distance service licences, and the internet service provider (ISP) pact, the petition has elaborated. Therefore, the definition of AGR will apply to the non-telcos as well, according to the SC order.

The companies likely to get impacted by the court judgment include PSUs like GAIL, Railtel, Power Grid Corporation, Oil India Ltd, Delhi Metro Rail Corporation, Bharat Broadband Network and Software Technology Parks of India.

The PSUs, according to the calculations in the petition, will have to pay around Rs 2.18 trillion, while an outgo of Rs 9,571 crore has been estimated as dues from around 32 non-telecom private companies.

An email sent to Bharti Airtel did not elicit any response.

The estimates made in the submission by Bharti Airtel point out that GAIL, the largest state-owned natural gas processing and distribution company in India, will bear the biggest burden at Rs 1.32 trillion. Power Grid will be next with a demand of Rs 43,544 crore, followed by Oil India at Rs 32,766 crore. Among the non-telecom private sector players, Den Networks and Hathway Cable & Datacom have to pay Rs 1,798 crore and Rs 1,742 crore, respectively. 

Both these companies have been bought over by Mukesh Ambani’s Reliance Industries. Siticable, owned by the Essel group, has to fork out Rs 1,397 crore. The others who have to pay smaller amounts include IndusInd Media, Verizon Communications and Quadrant Televentures.  

The calculations in the submission have been made on the basis of the gross revenues of the companies reported in their annual reports. The final figures have been arrived at by adding the  interest, penalty and interest on the penalty.

Distress call

• Payouts related to AGR by non-telcos to far exceed demand made on telecom operators, including those that have either shut down or sold off

• Entities likely to be hit are GAIL, Railtel, Power Grid Corporation, Oil India, Delhi Metro Rail Corporation, Bharat Broadband Network, and Software Technology Parks of India

• PSUs will have to pay to the tune of Rs 2.2 trillion; 32 non-telecom private firms may see outgo of Rs 9,571 crore